CBN to penalize banks supporting unlicensed foreign businesses

By linking funding to various investment opportunities, it might also encourage foreign direct investment in the host nation.

The Central Bank of Nigeria issued this directive to set forth the conditions for the licensing and operation of authorized representative offices of foreign banks in Nigeria in light of the aforementioned factors.

The CBN noted that the rules applied to banks licensed under any foreign law whose registered head office is outside of Nigeria; any financial institution licensed under foreign law whose primary business includes the receipt of deposits, the granting of loans, and/or the provision of current and savings accounts; and any foreign-owned operating bank/financial holding company that is foreign-based and owns a controlling interest in one or more banks or institutions whose primary business includes the receipt of deposits.